Hospital Application- Hospital Scenario



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Jan 9, 2024





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Hospital Application: Hospital Scenario Brandi Munday College of Science, Grand Canyon University HCA-240 Professor Joseph Anderson December 10, 2023 1
Hospital Application: Question 1 What are the components of operating budgets for a hospital of this kind? An operational budget is an estimate of an organization's revenue and expenses during a time period. When beginning the process of building an operational budget there are multiple components to keep in mind. Running a Level 1 trauma center with it being recognized as a leader in trauma care can be challenging. It is important to look at all of the aspects of running a hospital which include the duties of managing an entire organization and their funds. Each department in the hospital has its own separate budget which will need to be understood in order to create the overall operational budget for a hospital. An Administrator in charge of a Level 1 trauma center would need to understand the income potential of the hospital and the cost of the activities. The components of an operating budget will include considering the cost of medical supplies, nutritional services, working hours of employees, maintenance which could differ based on weather, and any utilities of the hospital. In order to make sure the level 1 trauma center is running properly, an administrator would have to focus on properly estimating the costs it would take to operate the hospital on a daily, monthly, and yearly basis. On top of that they would have to make sure their operating budget is aligning with the hospitals goals they have set internally. Question 2 What role does variance reporting have on building an operational budget? Variance reporting is typically used to analyze any differences between the hospital's budget and its actual performance. The use of variance reporting is important to a hospital's growth financially and its physical performance. Variance reporting helps a hospital to identify
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